RE:Technical Insight™Your point about the CCI is correct, however consider this. Here's a chart of CPG current as of today. I marked out ranges using the CCI. The start of each range is where CCI hit and went above 70; the end of each range is where the CCI dropped back below 70. With the uptrend CPG has been in, you could have captured $4.80 of gains just by playing the CCI.
Looking at where we are today I think the CCI could still have a bit of room to run before dropping back. Perhaps we see a bit of a pull back next week.
That being said, with Saudi Arabia and Russia basically having told the world this week to go pound sand; COVID winding down; states re-opening; and the spring/summer driving season soon upon us, I think the stars are aligned for a continued run. I don't see anything on the immediate horizon to suggest the trend is reversing. If anything I think there's greater likelihood we see a dust up in the middle east that pushes oil higher.
In any event... it's always the black swans we never see coming. For all I know the world will discover free energy on Saturday and the price of oil will crash Sunday night.
Sorry if you missed the run however the good news is that it's not over! Have a good weekend.
juvefooballclub wrote:
Commodity Channel Index (CCI)
Implication
Recognia identifies the following CCI events:
- A bullish event when the CCI rises above the +100% line.
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Typically, if the price is greater than the moving average, then the CCI will rise towards or above the 100% line. If the price drops below the moving average, then the CCI will drop towards or past the -100% line.